A debt overhang has only four resolution options, all bad: fiscal restraint (cutting consumption), debt repudiation/jubilee, letting inflation rip, or financial repression; the actual outcome will likely be a combination, with financial repression—holding interest rates below rising inflation via administrative means—as the least-bad and most probable core mechanism.
normativepending
Speaker
William WhiteEvidence Quote
“each year the real value of the debt is going down and at the end of it you have a situation like at the end of World War II”
Created: 6/18/2026, 1:58:55 PM
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